The Continuous Printing of Money - page 4.

Ranly123

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Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

When your economy is not doing well, the inflation is beyond control and the people are demanding for changes...what will you do? Of course, you will print billions and billions of paper money so you have the budget for anything you want and to solve many monetary problems your country is facing today and into the future. Now to make things spiced up and politically correct, you are going to call the printing of more money as "quantitative easing" a term pregnant with many possibilities, opportunities and threats depending on which of the equation you are located.

In an interesting article, the author likened this quantitative easing to an additive drug even more potent than the usual marijuana or cocaine you can buy on the street. And now, politicians and bureaucrat are getting addictive into it as their easy fix to solve myriad of problems.

Further Read: https://news.bitcoin.com/after-trillions-printed-under-qe-politicians-now-say-deficits-dont-matter/

We all know that eventually, printing of more money can result into disaster in the long-run. This is not like a chili pepper hot sauce that can immediately be felt but definitely this is like pawning the very future of the people.

I think it's not that easy to just print paper money from nothing. Of course the country needs to have deposits in the world Bank to justify the total money circulating in a country. It's easy to print but it also needs deposits.

el kaka22

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Debt-trap policy is not there to keep the country in a debt forever to make them go even further into debt and continue like that.

It exists because if a country doesn't have a debt at all then they would be capable of going back into problem again and will be needed to bail out however if a debt-trap type of issue is given then they will have to fix their situation in order to keep paying the debt, if you have debt then you will be fiscally responsible and as long as you have a debt you will continue to be fiscally responsible, that is why debt-trap is great for countries that do not have governments that realize whats wrong with their own country and try to fix it.

Being in debt then getting out of that debt and then ruining it and going back to debt will create a problem on that country that result with many people becoming poor than rich then rich than poor and continue like that, instead be in debt forever and have people who are neither poor nor rich but just alright.

Look at Greece, they have been in debt forever but they are at least working on fixing it, that is how everyone should handle debts. They are in far better situation than 2008 and aftermath even though they have been in debt for over 10 years.

fidelium1

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Printing more money is never a good solution to economic problems, in fact on the long run, it worsen the situation. I will encourage that in the face of social and economic challenges, meaningful policies should be made rather than printing more money.

Whosdaddy

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Sorry, but you don't know what you're saying. Printing lots of money doesn't mean that you will get a lot of money to solve your monetary problems just like you have said, sorry but you're very wrong. Because printing lots of money means that your country's money will be losing its value and that means that the purchase power will be dropping.

Every product in the country will be expensive for an average man to buy, cause they won't be able to afford it. So printing money doesn't make any sense. When there isn't excess in circulation, the value of the money goes high.

Daniwahyu007

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it's true that printing money is not an easy matter that can cause problems, of course this might have to be considered because their politicians are very cunning and greedy. for that the government is better off adopting crypto with a supply that is clear and cannot be multiplied

BitHodler

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Quote from: uneng on May 23, 2019, 05:13:54 PM

The only solution is to reduce public expenses, decrease the number of public jobs and to no centralize the country too much. Let the states, provinces, villages have more autonomy and incentive private initiative to invest on the country decreasing taxes and regulations.

In my case that's already happening. The city I'm living in booked a positive net result, and that without excessive taxation, while the country as a whole is performing considerably worse.

Local governments are much closer to the people and the local economy than the politicians are trying to figure out what the heck is going on with the country as a whole. It's quite a shitshow to be honest, and the situation hasn't changed one bit.

If local governments are easily outperforming the rest of the country that's lead by a bunch of idiots totally disconnected from the average person or the economy, then why not look at what they do right and adopt the changes?

STT

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Whats happening now is the first time its ever happened in history. We have a united effort to print money in excess of growth or justification of trade increasing not just in one country but across the majority of the worlds most dominant economies.
So we have printing in USA, UK, Japan, EURO and much of the rest of the world who dont want to fall out of line and suffer any idea of a problem with trade vs these weaker currency standard countries.

What should eventually result is that it is found that a strong currency is beneficial to at least one country with a vital product it can export regardless of consumers ability to afford. The normal status of demand exceeding supply and demand or production of goods in demand being the most important component to a growing economy.

The confusion stems from politics and agreements between countries to work together no matter what. Thats a positive force except where all parties agree to do the wrong thing, which is the case with increased debt that is never repaid. We should see this fall over at some point as money is better directed elsewhere, but I dont know how that happens exactly and how much pain might occur with that upset and reorganisation.

uneng

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That is the economical model of those who don't want to fix things, but to make the eternal maintenance of the problems. It's not a surprise Venezuela is making these mistakes as they chose a leftist party to rule the country. That is a total artificial economy with the sole purpose of keeping the appearences and to promise free (or very cheap) stuff for the people. Seems Argentina went through the same way and refused to fix the problems in the country, although Macri promised to be a liberal.

The only solution is to reduce public expenses, decrease the number of public jobs and to no centralize the country too much. Let the states, provinces, villages have more autonomy and incentive private initiative to invest on the country decreasing taxes and regulations.

adzino

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Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

-snip-
We all know that eventually, printing of more money can result into disaster in the long-run. This is not like a chili pepper hot sauce that can immediately be felt but definitely this is like pawning the very future of the people.

Yeah, it will bring a disaster in the long run if everything is made in an unplanned way. If you keep on printing money, the total money that will circulate in the economy will increase. This means more purchasing power for the people. But, in this case, the purchasing power has increased, but the production is still the same. Thus, the seller will be bound to increase the price of the goods to keep up with the demand. This in turn causes inflation in the country. Again, it also (most of the time) weakens the currency value.

Nellayar

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Like what happened in Venezuela wherein Mr. Sachez printed a lot of paper bills in order for his citizen to have money, it may lead in inflation. Making paper bills out of control may lose the economic stability. In order to stabiliE the economy, the government need also to adjust their monetary policy. In short, having a scarce amount of fiat will help the economy to prevent inflation.

Shenzou

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Well obviously printing money is not going to help the economy at all, i mean it is going to lead to inflation and the local currency becoming useless and its value will go down significantly, i mean haven't they really learned from what happend to Zimbabwe where they have a 1 trillion dollar bill that is worth 1 usd, that mean the the economy is domed and government issued currency is dead, now they are trading with currencies like usd and euro and other neighboring countries currency in order to keep the wheel going.

oseikuf44

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The continuous printing of money will never stop since it forms part of the function of central government but the problem is when the government fail to control the supply of money in the system.

Bezobraznike

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Uncontrolled money printing is working well only in the USA. I really do not know how they managed that, but it works.
In the case of other countries everything starts with raising of taxes which the government takes to cover their needs. Then prices for goods and foods raise. As the result minimal salary got increased. And after begin a new circle.
As you can see the problem in the head of the country, government. In the case of fast raising inflation and uncontrolled money printing the head should be changed. But it is really hard to managed, because of people on the top are taking for their position with all teeth.

exstasie

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Quote from: Reid on May 22, 2019, 05:25:43 PM

Fiat have been around for quite some time, it needs changes. Something where they cannot create another anymore. This is also to keep the country from being sold into the world bank. Grin

Something like bitcoin is a good option.

It could be, although to be completely fair, we haven't exactly tested Bitcoin's deflationary model yet.

Right now the Bitcoin supply is still inflating at a pretty fast rate. That keeps miners strongly motivated to secure the network. In the future, mining revenue will only be composed of transaction fees. Will the network remain as secure as today?

I've read some compelling opinions from respectable people (Peter Todd comes to mind) who think a predictably low but perpetual inflation rate is a more reliable economic design. Time will tell, I guess!

Naida_BR

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Quote from: CryptoBry on May 21, 2019, 02:58:39 AM

When your economy is not doing well, the inflation is beyond control and the people are demanding for changes...what will you do? Of course, you will print billions and billions of paper money so you have the budget for anything you want and to solve many monetary problems your country is facing today and into the future. Now to make things spiced up and politically correct, you are going to call the printing of more money as "quantitative easing" a term pregnant with many possibilities, opportunities and threats depending on which of the equation you are located.

In an interesting article, the author likened this quantitative easing to an additive drug even more potent than the usual marijuana or cocaine you can buy on the street. And now, politicians and bureaucrat are getting addictive into it as their easy fix to solve myriad of problems.

Further Read: https://news.bitcoin.com/after-trillions-printed-under-qe-politicians-now-say-deficits-dont-matter/

We all know that eventually, printing of more money can result into disaster in the long-run. This is not like a chili pepper hot sauce that can immediately be felt but definitely this is like pawning the very future of the people.

This is the vicious cycle of the fiat currencies that sadly will blow in the next years.
Already there are a lot of economies that print money without adding any value in the global economy, pushing the debt crisis in a red scale. These money will go to rich countries and not to poor ones, thus they will enforce inequalities in the globe.

Indrawan77

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When inflation happened, its not wise to keep on printing the money, it will makes the situation become worse and the money will lose more value, the government need to think other idea to save the country maybe by loaning or selling some assets, printing money is not a solution look at Venezuela that become worse and worse

iMark

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Quote from: Thanasis on May 22, 2019, 12:46:40 AM

But we still trusting those paper money and running for it all of our life,when it going to change. Huh

EVen if we are earnig more and more money we will go into the debts again because our governments will print more money,so pathetic.We have the solution already but we made the bitcoin into asset rather than using as currency.

Because we live in a country that has rules, thats why we still use paper money, and that won't change.
but in my opinion every country will not do anything stupid by printing millions of banknotes for no reason right? of course printing will be tailored to the needs and mutual agreement in a government.

joniboini

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Quote from: Ozero on May 23, 2019, 12:07:01 AM

Therefore, international loans and other economic instruments are used.

As long as the loans wouldn't result in debt-trap policy, it's good. However, loans should never be the main priority. They should increase the economic power from their own country, by doing something like human development, encouraging youngsters to run their own business, help the small & medium business to grow and so on.

At one point or another, it still doesn't change the fact that fiat buying power will eventually decrease, and it's not a really good instrument to store your asset imo.

Ozero

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Governments of various countries also understand that excessive printing of paper money directly affects inflation and therefore does not always use this method in difficult situations with the economic development of the country. Therefore, international loans and other economic instruments are used. Minor inflation is even useful for the economy, as long as it does not exceed the permissible limits.

Xampeuu

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Quote from: Reid on May 22, 2019, 05:25:43 PM

And that is also copied by some of the ICO tokens.
Got 10M tokens and then suddenly they needed more so they will adjust it like forking their own token. Voila! You got yourself billions of token without any value.
Then suddenly they lose supporters because of what they did.

Fiat have been around for quite some time, it needs changes. Something where they cannot create another anymore. This is also to keep the country from being sold into the world bank. Grin

Something like bitcoin is a good option.

I agree, increasing supply will result in a reduction in value. this happened as you explained that the token investor became uninterested and finally left him one by one, until the project fell asleep himself

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